Business Model Canvas (BMC)- A new venture concept

Business model Canvas (BMC)
Value proposition
Business model vs business plan
Customer Segments
Customer relationships
Channels
Key activities
Key resources
Revenue Streams
Key partners
Cost structure

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SIEN6006
Entrepreneurship
Week 10
Sergio Pinzon

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Today’s agenda
–Next week consulting presentation instructions
–Business model Canvas (BMC)

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Value Proposition Canvas

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–How your product solves customers’
problems or improves their situation
–Delivers specific benefits
–Tells the customers why they should buy
from you and not from the competition.
Value Proposition

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What is a business model?
The story of how your venture will
operate.
E.G:
-What are your resources?
-Who are your end users?
-How will you reach them?
-What will you offer them?
-How will you function?
It provides structure, and flexibility

6. Business model
•Quick and easy way to
communicate a new
venture concept
•Foundation of a new
business
•One-page document
(with potential to
expand)
Business plan
•Detailed analysis of how
your venture will run
•Structure of a new business
•Substantial document (e.g.,
industry, competitor
analysis, need, internal
structure, financials,
marketing, operations, etc.)

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9. ELEMENTS OF
VALUE
PYRAMID

10. Newness
Apple vision pro
Performance
Generative tech
Customization
Mobile cases
Getting the job done
McDonalds and Uber
Design
Small EV (Eli electric)
Brand/ Status
Rolex/ Underground
Value proposition examples

11. Price
Tiger/ Aldi

Cost reduction
Workday/ Sales force
Risk reduction
Private health Insurance
Accessibility
Bricksave
Convenience/ Usability
Uber eats/ Milk run
Value proposition examples

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Customer Segments
Diversified
Customers with very different needs.
Micro Precision System
The watch industry, the medical industry,
and the industrial automation
Niche
Cater to specific, specialized
Car part manufacturers
Mass market
Broadly similar needs and problems
The consumer electronic sector
This Photo by Unknown Author is licensed under CC
BY-SA-NC

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Segmented
Sub-groups of consumers
Slightly different needs and problems
Online storage space and on- demand server usage
Multi- sided platforms (or multi- sided markets)
Two or more interdependent Customer Segments.
Large base of credit card holders and a large base of
merchants
Customer Segments

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Customer relationships
Personal assistance
Call centres, CRM
Dedicated personal
assistance
Banks
Automated services
Woolworth
Communities
Alli by
GlaxoSmithKline
Co-creation
YouTube & amazon

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Channels
Own (direct)
Digital marketing
•Social media
•SEO
•Events (trade shows)
Partners (Indirect)
Wholesaler
Outsource

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Key activities
Production
Continuous improvement
Platform/network
It relates to platform management, service provisioning, and platform promotion.

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Key resources
Physical Manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and
distribution networks.
Kmart
Intellectual Brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases
Nike, Sony, Microsoft
Human Netflix
Financial Cash, lines of credit, or a stock option pool for hiring key employees.

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Revenue Streams
Asset sale (Product)
Amazon sells books, music, consumer electronics,
and more online
Fiat sells automobiles, which buyers are free to
drive, resell, or even destroy.
Usage fee (Service)
Hairdressers
Construction workers
Consultants
Gym
Subscription
A subscription is a type of program in which a
user pays a recurring fee for access to certain
specified benefits
Spotify, Netflix

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Revenue Streams
Insurance entails the transfer of risk from a customer
to a seller of an insurance policy
Property Insurance
Health insurance
Reselling is the purchasing of an asset from one seller
and the subsequent sale of that asset to an end buyer
at a premium price.
Farmers supplying fruits and vegetables to a
grocery store
Manufacturers selling goods to a hardware store
Agency/Promotion. Agents create value by marketing
an asset, which they don’t own, to an interested buyer.
They then earn a fee or a commission for bringing the
buyer and seller together
Travel agency
Skyscanner
Airbnb

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Key partners
Strategic alliances between non-competitors
Coopetition: strategic partnerships between competitors
Joint ventures to develop new businesses
Buyer-supplier relationships to assure reliable supplies

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Cost structure
•Value-driven vs value driven
•Fixed cost and variable cost
•Economies of scale and economies of scope

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Cold tasty
refreshing
lemonade on-the-
go
Personal
Park visitors
Kiosk sale
Lemonade sales Tips
Making lemonade
Marketing
Selling lemonade
Ingredients
Sales people
Kiosk &
equipment
Ingredients Sales /
commission
Equipment
Flyers
Social media
Local council
Event
organisers

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Exercise
In your Assignment #2 groups:Complete a Business Model Canvas for
your chosen entrepreneur.

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Week 11 – Recap and Looking Forward
We will:
•Review some of the key aspects of entrepreneurship and innovation we
have explored over semester.
•Review: Canvas content (no live lecture)
•Workshop: Presentations.